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Think through fee-for-service first: Bromley

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Australian Broker | 04 Nov 2011, 05:30 AM Agree 0
More thought needs to be put into the practice and implications of fee-for-service, according to LJ Hooker Finance's Peter Bromley
  • Chris C | 04 Nov 2011, 11:16 AM Agree 0
    Rather than just talking about it and fear mongering as they have over the last year or so, some Brokers have already worked this out. The industry did not start up as free service as is stated here - it was initially a fee for service until the Lenders started paying up fronts and later trails to compete for the business (when it suits them) - we are just reverting back to what we had and providing we do the right thing and the customer can see their benefits it is fine. Regarding the re-introduction of fee for service, our previous advices are correct in that if we do not charge a fee for not all, but some of our work we go backwards. We don't see the Lenders or the Aggregators going backwards (do we). The possible clawbacks / tightening of Lenders commissions / NCCP extra paperwork and processes all add costs to the Brokers without the ability to cover these costs if we cannot charge a fee - so it erks me when these larger organisations come out and use smoke and mirrors to support their own cause - just like the majors stating that although the commission may have reduced and clawbacks terms hightened in the GFC that many Brokers will leave the industry bla bla bla and the ones that are left will have more loans to write and therefore eran more $ - der - simple maths here guys its still going backwards on a deal by deal basis....smoke and mirrors again to support their reasons for reducing commissions while they increase fees and margins and boasrt record profits during a GFC...............smoke and mirrors guys.

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